UNITED NATIONS,
May 14 – When
the
International
Monetary Fund
reviews
developed
countries'
banking
sectors,
particularly in
Europe, some
banks'
participation
in predatory
lending gets
over looked.
Consider
Deutsche Bank,
and today's
IMF assessment
of the Germany
banking sector,
just out from
under embargo
as of this
publication:
"The German
banking and
life insurance
sectors should
accelerate
their
restructuring
to bolster
profitability
and reduce
risks. In the
banking
sector, the
regulatory
capital ratio
has increased,
but the
cost-to-income
ratio and
leverage
remain high.
The high cost
structure,
alongside low
net interest
margins,
provisions for
compliance
violations,
and the need
to adjust to
the new
regulatory
environment,
continue to
weigh on
profitability.
Restructuring
is ongoing in
the banking
sector, but
the process
must be
accelerated
through faster
implementation
of
restructuring
plans,
continued
development of
fee-based
income, and
further
consolidation.
In the life
insurance
sector, low
interest rates
have dented
solvency
ratios, and
further
progress is
needed to
reduce
reliance on
guaranteed
return
products. In
this context,
supervisory
attention to
interest rate
risk and
progress in
implementing
restructuring
plans both in
banking and
insurance
should
continue."
What about
abuse of
consumers,
participation
in predatory
lending
schemes and
other abuses?
What about
Greece? What
about Deutsche
bank as the
riskiest
bank? The
IMF announced
a press
conference,
but apparently
no live
stream: "At
the conclusion
of the 2018
IMF Article IV
mission to
Germany, the
mission chief
Julie Kozack
will hold a
press
conference at
the Bundesbank
offices in
Berlin to
present the
missions’
Concluding
Statement and
answer
questions from
media.
When: Monday,
May 14, 2018
at 1 pm CET.
Where:
Deutsche
Bundesbank,
Hauptverwaltung
in Berlin und
BrandenburgLeibnizstr.
10,
Berlin-Charlottenburg
Participants:
Julie Kozack,
Assistant
Director,
European
Department
How:
Journalists
interested in
participating
should
register with
Bundesbank
e-mail
christiane.engellandt-kranen."We'll
have more on
this.When
the IMF held
its Middle
East press
conference at
its Spring
Meetings on
April 20,
Inner City
Press
submitted this
question: "On
Yemen, what
are the IMF's
predictions
and what are
its current
actions, for
example in
ensuring the
payment of
public
servants?
Relatedly,
what is the
impact of the
war on Yemen
on the Saudi
economy?
-Matthew
Russell Lee,
Inner City
Press."
Spokesperson
Wafa Amr read
the question,
from Matthew
Lee, to Jihad
Azour, the Director of the
IMF's
Middle East
and Central
Asia
Department, who
said (full
audio here),
"The
situation in Yemen has
inflicted
a big
humanitarian
toll. The Fund
is helping the
Yemeni
authorities,
the Central
Bank, in
designing and
managing the
financial
framework to
distribute
salaries...
and import
goods and
medicines.
With the
government, we
try to help
them preserve
the Central
Bank and the
ministry of finance.
We are in dialogue
with global
community, providing
assessment of
the challenges and
the best
instruments
that could
help."
Afterward, the
IMF sent
Inner City
Press an email
that "Yemen is
suffering deep
humanitarian
and economic
crisis.
Outlook is
very uncertain
and will be
dependent on
security
developments.Recession
in Yemen
continued in
2017 and GDP
fell by 14
percent. We
expect zero
growth in
2018, under
the assumption
that the
conflict will
end end of the
year." It's
appreciated,
but there
was no answer
about
the impact on
the Saudi
economy. On
May 7, the IMF
issuedthis, on
vicious censor
Sisi of
Egypt:
"Following a
meeting with
Egypt’s
President
Abdel Fattah
El Sisi in
Cairo today,
Mr. David
Lipton, First
Deputy
Managing
Director of
the
International
Monetary Fund
(IMF), issued
the following
statement: ;President
El Sisi and I
discussed
Egypt’s
economic
outlook and
progress in
Egypt’s reform
program
supported by
the IMF. The
reforms have
started to
reap results,
especially
with regard to
Egypt’s
macroeconomic
stabilization:
growth is at
the highest
rate since
2008,
inflation has
rapidly
declined,
foreign
exchange
reserves are
at record
levels,
exports are
growing and
unemployment
has declined. We
also discussed
the outcome of
the Inclusive
Growth and Job
Creation
Conference
[link to the
PR announcing
the
conference],
co-organized
by the
Egyptian
authorities
and the IMF in
Cairo May 5-6.
I was
encouraged by
the
determination,
shared by
policy makers,
the private
sector,
members of the
parliament and
civil society.
There was
consensus that
Egypt needs to
lock in the
gains in
macroeconomic
stabilization
and shift
gears towards
the
implementation
of a
home-grown
structural
reform agenda
to achieve
more inclusive
and private
sector-led
growth. This
will help
create jobs,
which is the
best way to
reduce poverty
and improve
living
standards. In
this context,
the conference
also benefited
from the
participation
of former
senior
policymakers
from Korea,
India and
Malaysia who
shared their
reform
experiences. I
thanked
President El
Sisi, Prime
Minister
Sherif Ismail,
Governor of
the Central
Bank of Egypt
Tarek Amer and
the Minister
of Finance Amr
El Garhy for
co-hosting the
conference. As
we continue
our
partnership,
we stand ready
to help Egypt
achieve a
better future
for its
people.” Watch
this site.When
the IMF held its
biweekly
embargoed
briefing on March
29, Inner
City Press
submitted
questions about
South Korea,
Myanmar and
Jamaica, see
below.
Spokesman
Gerry Rice
read out Inner
City Press'
South Korea
question. From
the IMF transcript:
"on South
Korea. This is
from Matthew
Lee. The U.S.
says it's
Treasury
Department is
finalizing an
understanding
with South
Korea to avoid
practices that
provide an
unfair
competitive
advantage.
What does the
IMF think of
such bilateral
forex
arrangements?
There are
other
questions on
trade, so let
me just take
that. On the
U.S.-Korea
discussions on
trade, I don't
have the
details of
that. So, you
know, I
wouldn't
speculate on
that. What I
would say more
generally is
that we
believe
bilateral and
regional
agreements can
bring
important
benefits by
building on a
strong
multilateral
trade system
that promotes
transparency
and includes
well-enforced
trade rules
that promote
even-handed
competition,
is what I
would say on
that one."
Rice spent
much of the
briefing
trying to
correct "commentary"
- that is,
coverage - of
Madame
Lagarde's CFC
proposal; he
added as the
final online
question that
an IMF team
will be in
Brazzaville in
early April.
This comes
after the IMF
praised
another long time
family run
government in Gabon.
He promised
very "products
and events"
for the
upcoming Spring
meetings.
Inner City
Press asked:
1) "In the
IMF's Myanmar
statement it
is said that
“the direct
economic
impacts of the
humanitarian
crisis in
Rakhine state
have been
largely
localized.”
Can you explain?
How local? 2)
In Jamaica,
the Tourism
Enhancement
Fund (TEF)
says it was
following the
orders of the
IMF when it
cut off
funding to the
Nuh Dutty Up
Jamaica
Campaign
implemented by
the Jamaica
Environment
Trust (JET),
leaving its
future in
doubt. What is
the IMF's
response?"
Watch this
site - the IMF
has yet to
respond on
some previous
questions. On
Cameroon, with
the government
continuing to
cut and/or
slow the
Internet in
the Anglophone
parts of the
country amid
border
incursions
into Nigeria
and
"refoulement"
of refugees
there, what is
the IMF's
estimate of
the costs, and
comment on
continuing to
support and
this
government and
its actions? On
March 7 Inner
City Press
asked an IMF
press
conference
about the
Nigerian
economy this
question:
"What does the
IMF think the
economic
impact will be
of CITES'
inquiry into
the irregular
export of
endangered
rosewood to
China, and new
restrictions
imposed on
such exports
from Nigeria?"
We'll have
more on this.
(Inner City
Press also
asked Amine
Mati, Senior
Resident
Representative
and Mission
Chief for
Nigeria and
Lucie Mboto
Fouda, "On the
Nigerian
banking
sector, did
the IMF
consider the
allegations of
fraud, from
the account in
First Bank
Nigeria Plc of
NNPC and Agip,
to the
non-payment of
interest by
Standard
Chartered
Bank, Fidelity
Bank, Stanbic
IBTC, Access
Bank, FCMB,
Skye Bank,
Sterling Bank,
Zenith Bank
and Unity Bank
after the sale
of Power
Holding
Company of
Nigeria?
Separately,
what about
Nigerian
banks' service
to SMEs?"
Back in February,
Inner City
Press asked
the IMF of Zimbabwe,
Iraq, Sierra
Leone,
Cameroon and
Hungary.
Spokesman Gerry
Rice took
Inner City
Press'
Zimbabwe
question, including the
word usurious,
then provided
assurances
that Madame
Lagarde met the
new president in
Davos and the
IMF stands
ready to help -
when other
arrears are
paid off. The
IMF did not
(yet?) answer
these Inner
City Press
questions: On
Iraq, please
comment and
clarify: MP
Abbas Bayati
has rejected
reports that
the IMF has
said loans to
the central
government
will be issued
on the
condition
Baghdad
guarantees a
minimum
portion of the
national
budget for the
Kurdistan
Region. He
said IMF does
“not
investigate
the details of
the loans
[spent] by
Iraq.” True?
In Hungary,
Norbert Maxin
and Bela Bukta
have been
cleared of
handing over
damaging
information
to, or spying
for, the IMF.
What is the
IMF's comment,
and its
interactions
with the two,
now that the
case is over
and the IMF
can (and
should) speak?Follow
up on Sierra
Leone, where
it's said the
IMF instead of
using the word
“stop” used a
softer
diplomatic
word “delay”
of payments...
what the
Minister of
Finance and
Baratay are
doing is spin
the fact. If
they win the
elections,
they will now
begin to
implement the
IMF conditions
at the
detriment of
the ordinary
people. In the
first place,
they agreed on
the conditions
at the
detriment of
the ordinary
people of this
country; their
only motive
was to receive
the money for
themselves and
use the
remainder to
fund the
elections so
that they can
stay in power." Back
on February 1 on
Sierra
Leone, Inner
City Press
asked: "please
specify the
status of
IMF's payments
under the $224
million
program to the
government as
relates to the
upcoming
elections and
conditions
such as
cutting
subsidies on
rice and fuel." Deputy
IMF Spokesman
William Murray
replied that a
review that had been
slated to be
concluded in
December has
not been; he
dodged on
the relation
to the
election but it
definitely
calls into
question the
denials of
Sierra Leone's
finance
minister and
his demand
that Africa
Confidential
get fact
checkers. On
Zimbabwe,
Inner City
Press asked,
"On Zimbabwe,
please specify
the IMF's
advice for
clearing
foreign debt.
Is it, as
reported, cuts
to public
sector wages,
reducing farm
subsidies,
improving
transparency
in the mining
sector &
reaching an
agreement on
compensating
farmers?"
Murray talked
up Managing
Director
Lagarde's
meeting(s) in
Davos but said
the country
still has a
ways to go.
Transcript and
video
soon.Back
on January 18,
Inner City
Press asked
the IMF about
Yemen, Somalia,
Tunisia and
Cameroon. On
Yemen, it
asked "With
continuing
holes in the
Yemeni Central
Bank, what if
anything is
the IMF
doing?" IMF
Spokesperson
Gerry Rice
read out Inner
City Press'
question and
then said
that the IMF
is helping
to build the
Central Bank's
capacity amid
the
humanitarian
crisis.
Transcript to
come. On
Somalia, Inner
City Press
asked of reports
that “Somalia
owes around
$4bn making it
almost
impossible for
Mogadishu to
access new
funds from the
IMF.” The IMF
puts the
figure at $5.1
billion. What
explains the
difference,
and how could
Somalia access
new IMF funds?" Rice
replied that
records were lost in
the war and
are being
reconstructed;
for now $5.1
billion is the
figure. Again,
transcript to
come, -
and more on
Cameroon and
the continued
undermining of
the Internet
and the
economy by
this big IMF
recipient,
Paul Biya's
government. Before
Rice's long
Tunisia
answer, Inner
City Press
had asked: "On
Tunisia, what
is the IMF's
comments on
its role in
imposing
austerity on
the country
since the
popular
uprising of
January 2011?
Did the IMF
exerted
sustained
pressure on
the Tunisian
Central Bank
to stop
intervening in
the currency
markets to
defend the
value of the
Tunisian
dinar,
increasing
imports?" The
IMF was prepared for
this,
emphasizing
for example
that cooking
oil will not
be subject to
the VAT, but
sweets and
alcohol will.
Video and
transcript to
come.Back
on
November 30,
Inner City
Press asked
about
critiques of
the IMF from
the Caribbean,
about Yemen, Zambia
and Kenya. The
first three of
these were
answered. IMF
Spokesperson
Gerry Rice
read out Inner
City Press'
question:
"Saint Lucia’s
Prime Minister
Allen
Chastanet has
said of the
IMF, 'If
you care about
the Caribbean,
you must
change the
rules of
engagement and
allow us to
help
ourselves.'
He's said the
billions of
dollars in
Caribbean
loans should
be
reclassified
by the IMF.
What is the
IMF's
response?"
Rice said
Managing
Director
Lagarde is
aware of the
criticism
from the Caribbean forum a
few weeks ago
and that a
study is
underway
including of catastrophe
bonds
but, he said,
the IMF cannot
currently do
the requested
reclassifications to make countries
eligible
for concessionary
financing.
On Zambia, Rice
notes that
Inner City
Press at the
UN had asked,
"Treasury
Secretary
Fredson Yamba
has said
Zambia expects
to host an IMF
mission before
the end of the
year and hopes
to have a $1.3
billion loan
deal in place
in early 2018.
'Come
2018, we must
have a final
(IMF)
programme. It
has taken a
long time
because the
parameters
have been
changing.'
What is the
IMF's status
with Zambia?" Rice
said after
the pause in
August,progress
has been made,
the interest
is there, but
some
information
and clarifications
are still
awaited. "We are
waiting for
further data
and details on the
government's
external
borrowing
plans," he
said. On
Inner City
Press' Yemen
question,
Rice said the
IMF "donor
grants will be
needed" for
the payment of
wages
and social
assistance and
that the IMF is
willing to
help with
macro-stability
once the
conflict is
over. But when
will that be?
Here was and
is Inner City
Press' Kenya
question: In
Kenya, IMF rep
Jan Mikkelsen
is quoted that
“discussions
about the
current
programme and
what will
follow after
the expiration
in March are
expected to
begin soon,
with the new
government
taking office.
The
authorities
have indicated
that they are
interested to
continue a
programme
relationship
with the
IMF."Has the
IMF taken note
of, and what
is its comment
on, the
critique of
the election
by Raila
Odinga and the
NASA
Coalition?
Would the IMF
also confer
with the
opposition?"
We'll have
more on this.
Back on
September 28,
Inner City
Press asked
among other
things about
the IMF
negotiating
with a reputed
money launder
in
Congo-Brazzaville,
and about
corruption
charges
against
Finance
Minister Ishaq
Dar of
Pakistan, also
in IMF talks.
On the former,
IMF Deputy
Spokesman
William Murray
said the IMF
is again in
Brazzaville,
for the third
time, having a
“series of
contacts” on
financial
assessment. He
declined to
confirm or
deny the IMF
is talking
with Orion
Oil's Lucien
Ebata, but
this is widely
known, as is
his dealings
in cash, via
the Panama
Papers. We'll
have more on
this. Inner
City Press'
Pakistan
question was
and is: “On
Pakistan, it
is reported
that “the IMF
said it had
been told by
Pakistani
officials that
the
restrictions
[on luxury
imports] would
be removed
within a year
but Mr Abbasi
now says his
government was
planning to
impose more.”
Also, what is
the IMF
comment on the
corruption
charges
against
Finance
Minister Ishaq
Dar?” But when
re-submitting
through the
IMF's online
form, with
allows only
300
characters,
Inner City
Press took out
“[on luxury
imports]”
thinking the
IMF would know
what
restrictions
were being
referred to,
since they
imposed them.
They did not,
and did not
address the
Ishaq Dar
corruption
allegations.
Yet. Watch
this site.
When the
International
Monetary Fundre-started
its biweekly
embargoed
press
briefings on
September 14,
Inner City
Press
submitted questions
about Hurricane
Irma and moratoria,
Mozambique, DR
Congo and
Ghana: "what
is the IMF's
response to
civil society
saying 'the
Finance
Minister, in
particular, is
facing
conflict of
interest
investigation
with USA SEC,
Ghanaian SEC
and the
Commission on
Human Rights
and
Administrative
Justice
(CHRAJ) in
Ghana... We
are losing
hope as the
IMF seems not
concerned
about all
these
developments”?
The
first two got
answered,
during the
briefing, then
this on Ghana,
from an IMF
Spokesperson:
"We are aware
of the
allegations
raised in
Parliament and
the related
debates that
have been
reported on by
the media. The
Minister of
Finance
testified
before
Parliament to
clarify the
issue.Since
the approval
of the ECF
arrangement we
have been
working with
the
authorities on
strengthening
debt
management and
improving
governance and
transparency
of government
operations.
The enactment
and ongoing
implementation
of the Public
Financial
Management
Act, along
with the
implementation
of the debt
management
strategy,
indicate
progress in
these
areas." Inner
City Press
asked: "On
Antigua and
Barbuda, and
Hurricane Irma
impacted
countries more
generally... will
there be no
moratoria?
What is the
IMF doing?" IMF spokesperson
Gerry
Rice said,
"There's a
question from
Matthew Lee on
moratorium...
on that, I
would refer to
what Mme
Lagarde said a
few days ago,
of course the
IMF has
tremendous
sympathy. She
also said we
stand ready to
help. There
are a number
of options we
can look at in
that context.
At the moment
we are still
trying to make
an assessment.
As a factual
member, none
of our members
including
Antigua and
Barbuda have
formally
requested
assistance
from the
Fund." Oh. On
Mozambique, he
called again
for the
publication of
the full audit.
Inner City
Press also
asked, "On the
DR Congo, what
is the IMF's
response to
civil society
requests it
has received
that the Fund
end its
dealings with
the National
Petroleum
Company of the
Congo (SNPC),
specifically
that “if the
IMF obtained
the
dissolution of
Cotrade, a
subsidiary of
the SNPC, it
can also
demand and
obtain the
dissolution of
the SNPC and
the major
works”?Watch
this site and
see IMF's July
20, 2017transcript:
, with Inner City
Press'
question at that
time: "Ghana
President,
Nana
Akufo-Addo, on
Tuesday said
the country
will not
extend its
three-year aid
program with
the IMF beyond
April 2018.
The IMF had
urged it to do
so to give it
time to
complete the
program’s
goals. Did the
IMF so urge?A
step back real
quick for some
context. Right
now, we’re in
the process of
completing the
fourth review
of Ghana’s ECF
program. We’ve
made
significant
progress in
program
discussions,
and we expect
to reach
understandings
in all
remaining
issues in the
coming days.
The
discussions
are going to
continue and
as a result of
these
continuing
discussions, a
Board
discussion to
complete the
fourth review
probably won’t
take place
until late
August. Again,
Media
Relations will
get back to
everyone on
the exact
timing. But
it’s probably
late August
when Ghana’s
fourth review
will be taken
up by the
Executive
Board.
Now, the
question that
was just posed
was regarding
a comment
about
extension of
the ECF next
year when it’s
scheduled to
expire. The
President made
it clear that
he would like
to move Ghana
beyond aid.
And successful
completion of
the
IMF-supported
program could
be
instrumental
in achieving
this goal by
restoring
macroeconomic
stability in
Ghana. A
request for
program
extension is
essential for
our ability to
complete the
review of this
program
overall. And
given the
significant
fiscal
slippages from
last year, it
will also take
longer to
bring debt
onto a clearly
declining
path, which
explains the
need for the
program to
cover
performance
into later
next year.
This was
something that
was outlined
in a press
release issued
by the finance
minister on
July 18th.Mozambique:
the IMF’s Mr.
Lazare, our
mission chief,
has said that,
quote,
“critical
information
gaps remain
unaddressed
regarding the
use of loans,
proceeds”,
close quote.
Please be more
specific about
what the IMF
sees as the
information
gaps, and how
they can be
filled, with
what
information
and in what
detail?First
of all, we
welcomed and
continue to
welcome the
fact that the
delivery of an
international
forensic audit
on three
companies to
the office of
the public
prosecutor of
Mozambique has
taken place.
We commend
Mozambique
public
prosecutor for
undertaking
this important
audit and for
releasing the
summary of the
report.
Transparency
and good
governance are
key conditions
for
sustainable,
inclusive
growth, and
that applies
to all
countries. Now
we look
forward to the
publication of
the entire
audit report
in due course.
At that point,
we will be
able to
provide an
informed view
on the audit
and its
implications.
Still UNanswered:
"On
Zambia, Fitch
has “said the
key risk
stemming from
the current
political
tension if it
escalated
could
jeopardize an
IMF aid
package as
well as other
lender's
willingness to
provide the
southern
African nation
with external
financing” and
that “progress
towards an IMF
program has
remained slow
and may be
delayed
further by
domestic
political
events, adding
that
expectation of
an IMF program
was key to
Zambia's
B/negative
sovereign
rating.”
Please comment
on if progress
is slow and on
these risks.In
Sri Lanka,
Joint
Opposition’s
Parliamentarian
Bandula
Gunawardana on
July said that
the country's
Inland Revenue
Act, in accord
with the
agreement
arrived at
with the IMF,
is “an attempt
to sabotage
all forms of
tax relief
provided by
former
President
Mahinda
Rajapaksa
during his
tenure as the
Finance
Minister, and
clarified that
state-sponsored
relief was
also included
under the new
Act.” Is that
the IMF's
understanding
of the Inland
Revenue Act?
Please
comment.If
there is an
updated view
about the
Internet cut
off (lifted
only after 94
days) and
other
restrictions
in the
Anglophone
regions of
Cameroon
injuring
“Silicon
Mountain." Back on
June 22
Inner City
Press
submitted
questions about
Zambia,
Cameroon and
Haiti, where
it was.During
the embargoed
briefing, IMF
Spokesperson
Gerry Rice
read out Inner
City Press'
Zambia
question and
said,
"implementation
of the
remaining
actions in the
next few weeks
will enable us
to present the
authority's
request for an
Extended
Credit
Facility
arrangement to
the Board, and
we expect that
to be in
August of this
year." But
this Haiti
question has
yet to be
answered:
"Chris Walker
said
reconstruction
from the
effects of
Hurricane
Matthew, and
investments in
health,
education, and
social
services...
will be
achieved in
part through
the
elimination of
excessive
subsidies,
including
subsidies for
retail fuel
sales. Please
specify the
IMF's thinking
on time timing
and range of
subsidy
elimination
and ideas for
EDH utility." On
this and
Cameroon (see
below), we'll have
more. On
Cameroon,
Inner City
Press has
repeatedly
asked for the
IMF's "updated
view about the
Internet cut
off (lifted
only after 94
days) and
other
restrictions
in the
Anglophone
regions of
Cameroon
injuring 'Silicon
Mountain.'"
Watch this
site: we'll
stay on this.
The
next IMF
briefing is
July 13. From
the IMF's May
11 transcript, of
its Deputy
Spokesperson
Willam Murray:
"I’ve got a
question from
Inner City
Press on Sri
Lanka. Do
recent
government
moves on the
Inland Revenue
Act make it
more likely
the IMF Board
will act on
the request
for completion
of the second
loan review in
June and make
a third
disbursement?
Again, it’s a
question about
Sri Lanka and
the Inland
Revenue Act
and the
likelihood of
completing the
second review.We
had a staff
level
agreement in
Sri Lanka on
May 3rd, last
week. We noted
in announcing
that agreement
that it’s
subject to
completion of
a prior action
by the
authorities,
which is
submission of
the Inland
Revenue Act to
Parliament.
And that was a
prior action
that was
agreed earlier
this year. Our
legal experts
are still
analyzing the
content of the
new draft
bill, and are
in discussions
with the Sri
Lankan
authorities.
That’s where
we stand at
the moment on
Sri Lanka." The
answer's
appreciated. Back on
April 12
when at its Spring
Meetings the
IMF held its
Middle East
and Central
Asia press
conference,
Inner City
Press submitted
this question:
"Please
describe the
IMF's view and
possible plans
on Yemen,
given the
crisis there,
including on
President
Hadi's
proposed
moving of the
Central Bank
out of the
capital to
Aden. What is
the IMF's view
of and any
assistance to
the Central
Bank's
performance?" After
the briefing,
the IMF
provided this
answer: "The
humanitarian
and economic
impact of the
conflict has
been
devastating;
it has caused
many deaths,
depressed
economic
activity, and
destroyed much
of Yemen’s
infrastructure.There
is now even a
tangible risk
that the
conflict could
lead to famine
in some parts
of Yemen.Yemenis
food supply
relies largely
on imported
staples, like
wheat and
rice. Yemen
needs urgently
foreign
exchange
grants from
donors to pay
for imported
food.But
Yemenis also
need to be
able to buy
the food that
is imported.
Resuming
paying public
salaries and
social
assistance
grants in all
of Yemen is
therefore also
urgently
needed. Given
these needs,
the Central
Bank of Yemen
(CBY) could be
the pivotal
player for
facilitating
food imports
and for
resuming
paying public
salaries and
social
assistance
grants in all
of Yemen.But
to play this
humanitarian
role, the
central banks
in Aden and
Sana’a need
urgently to
find a way to
cooperate in
the interest
of providing
sufficient
food to all
Yemenis.
Fund
engagement is
currently
limited. We
support the
Yemeni
authorities
and the
international
community to
the best of
our
abilities.The
Fund stands
ready to
re-engage more
fully as soon
as the
conflict is
resolved to
help rebuild
economic
institutions,
jumpstart
growth, and
stabilize the
economy."

Back
on April 6
when the IMF
held its
biweekly
embargoed
press
briefing,
Inner City
Press asked
Spokesperson
Gerry Rice
about South
Africa,
Zambia,
Bosnia,
Nigeria and
the UN,
Cameroon and
other issues.
On Zambia,
Inner City
Press asked,
"On Zambia,
please state
if a sale /
privatization
of Zambia
Telecommunications
Company
(Zamtel) is no
longer a
condition for
an IMF program
with the
country, as
inferred from
the recent
list of
conditions
issued by the
IMF's Tsidi
Tsikata."
After
the briefing,
an IMF
Spokesperson
replied to
Inner City
Press that "We
have made
progress
towards
reaching
understandings
on an economic
program that
could be
supported by
an IMF
arrangement.
There is broad
agreement on
key
objectives,
targets, and
policies. We
have agreed to
continue
discussions at
the
forthcoming
April 2017
Spring
Meetings of
the IMF and
World Bank
here in
Washington
D.C. At this
stage, it is
premature for
us to get into
specifics on
policy actions
such as sales
of
parastatals."

On
South Africa,
Inner City
Press asked
"does the IMF
have any
comment on the
recent firing
of the finance
minister?
Separately,
have there
been any
discussions of
a possible
program with
South Africa?"
Rice said that
no request for
a program has
been received
-- "the South
African
authorities
have not
requested a
program from
the IMF" --
and that the
IMF normally
does not
comment on
"domestic
politics." He
went ont to
say, "it's
important that
institutions
remain strong
and the
government can
be united on
policies for
inclusive
growth for all
South
Africans."
We'll have
more on this.

On Bosnia,
Inner City Press asked the
IMF, among other things: "what
the IMF's comment on
opposition, from farmers and
the Republika Srpska to the
excise tax on fuel which it is
reported is a condition for
the IMF's program?" Early on
April 6, prior to the
embargoed briefing but there
reiterated at it, the IMF's
mission chief for Bosnia and
Herzegovina (BiH), Mr. Nadeem
Ilahi, said: "The IMF took
note that the BiH parliament
did not adopt the amendments
to the law on excise tax and
the new law on deposit
insurance during a session
held on April 5, 2017. This
will have implications for
mobilizing external financing
for much needed infrastructure
projects and for the
authorities’ efforts to
modernize banking sector
legislation. Both are key
requirements of the
authorities’ program,
supported by the IMF under the
Extended Fund Facility (EFF).
We now expect a significant
delay in completion of the
first review of the
program. In recent
months, the authorities have
made good progress in
implementing economic reforms
supported by the EFF,
particularly by strengthening
fiscal discipline,
safeguarding financial
stability, and improving
business environment. We stand
ready to assist the
authorities in continuing the
implementation of structural
reforms to unlock growth
potential and maintain
macroeconomic stability,
including through IMF advice
and technical assistance.The
authorities need more time to
make further progress in a
number of key areas of their
program, such as securing
financing for key
infrastructure project,
modernizing banking sector
legislations, and improving
corporate governance of state
owned enterprises. In the
period ahead, we will maintain
close dialogue with the
authorities and remain
committed to assist them in
their efforts.” We'll have
more on this.

Back on
March 23 when the
International Monetary Fund
held its previous biweekly
embargoed press briefing,
Inner City Press asked
Spokesperson Gerry Rice about
Dominica, Belarus, Cameroon
and other issues. On Dominica,
Inner City Press asked: "the IMF's Mr.
Guerson has referred to 'high
Citizenship-By-Investment
(CBI) revenues.' What is the
IMF's view of fraud and / or
AML dangers in that CBI
program? Mr Guerson also
called for the
'operationalization of the
Eastern Caribbean Asset
Management Company.” Can you
say more: by when, and on what
assets?" Shortly after the
briefing, an IMF spokesperson
responded to Inner City Press
that "seaking more generally
and not on Dominica
specifically, the IMF has
conducted extensive research
on citizenship programs in the
Caribbean including on the
regulatory and governance
challenges related to these
programs. As a general
principle, the Fund has
stressed the importance of
transparency in the design and
implementation of these
programs. When properly run,
these programs can be an
important source of additional
revenue. Generally speaking we
have called for receipts to be
held for future generations,
debt repayments and not to be
used for regular operating
expenses." Some in Domenica
have asked if the Skerrit
government's program is
meeting this standard, for
example with regard to
Macau-based businessman Ng Lap
Seng now facing a UN-related
bribery trial in the US
District Court for the
Southern District of New York.
But to emphasize: the IMF's
answer is general.

On
Cameroon, Inner City Press
asked: "the IMF's Mr. Selassie
said: 'there will be
significant fiscal reforms
that need to be effected as
well as reforms to promote
growth and we are working on
developing those with a number
of the CEMAC countries.'
Please provide further
specifics, particularly
regarding Cameroon and the
continuing financial impact of
the now 65-day Internet shut
down to the Anglophone areas
including “Silicon Mountain”
in Buea." We hope to have more
on this.

Earlier in March,
Inner City Press
asked both the International
Monetary Fund and the UN
Security Council's president
about the crisis in Cameroon's
Anglophone areas on March 9
and heard that while the IMF
acknowledges the financial
risk, the Security Council
does not see it as a threat to
international peace and
security. But the UN's
Resident Coordinator Najat
Rochdi has said nothing about
the crisis, and blocks
on Twitter the Press
which asks about it. Is the UN
system failing, in its new
Secretary General's promise of
increased preventative
diplomacy?

When the
IMF's spokesperson Gerry Rice
took questions on March 9,
Inner City Press asked about
Cameroon, specifically the
crackdown in the northwest and
southwest of the country.
Inner City Press asked, "On
Cameroon, after the mission
led by Corinne Delechat, what
is the status of talks for a
program, and since the IMF
cited “civil unrest in the
neighboring Central African
Republic,” please state the
IMF's awareness of civil
unrest and arrests in
Northwest and Southwest
Cameroon, also known as the
Anglophone areas, and their
impact." Rice read out the
question and then said, among
other things, that the risk
factors for 2017 include a
continuation of the "social
and political events" in the
"so-called Anglophone" areas
of Cameroon. Interim
video here. On IMF
site, here,
from 34:56. IMF
transcript below.

But a few
hours later when Inner City
Press asked the month's UN
Security Council president
Matthew Rycroft of the UK, who
had just been in Cameroon,
about the crisis, he said it
is not a threat to
international peace and
security. From the UK
transcript:

Inner City Press:
In Cameroon there’s an issue
that has been existing since
November in Anglophone areas
which have no internet for 52
days, there’s been teachers
arrested, no schools. So I’m
wondering as one Council
member said, it did somehow
come up in meetings, but was
the issue raised at all, and
what response was given by the
government to this ongoing cut
off of internet and abuse in
this area?

Amb Rycroft: It came up
informally in our contacts
with members of the Government
of Cameron but as far as I
recall it did not come up in
any formal meeting, and I
think that makes sense because
we were going there to look at
the threat to international
peace and security, and Boko
Haram, and related issues, but
in private, informal
discussions with ministers in
the Government of Cameroon it
came up and they gave us the
benefit of their perspective
on the issue.

Inner City Press: Is there any
Security Council role that can
be played in trying to
preventively deal with this
issue?

Amb Rycroft: I don’t think
it’s an issue on our agenda
per se, we keep our eye on our
radar across the world, but we
have to make a judgement about
whether something is a threat
to international peace and
security, and at the moment, I
think our judgement would be
that issue is an issue that is
confined within Cameroon
without international aspects.

"There is a
question of Cameroon, from
Matthew Lee, "After the
Mission what is the status of
talks for a program; and since
the IMF cited civil unrest in
the neighboring Central
African Republic, please state
the IMF's awareness of civil
unrest and arrests in
Northwest and Southwest
Cameroon? And also known as
the Anglophone areas, and
their impact?"

So, the background here is, I
think important the context.
So, the Fund's engagement here
in the CEMAC Region, CEMAC is
the six Central African
Economic nations that comprise
the Central African Economic
and monetary community. They
met in Yaoundé on December
23rd. The Managing Director
was there. And in that
meeting, heads of state
discussed the economic
situation, the severe shocks
that have hit that CEMAC
region in recent years,
including the sharp decline in
oil prices, and decided to act
collectively and in a
concerted manner. And the
heads of state requested the
assistance of the IMF to
design economic reforms needed
to reestablish macroeconomic
stability in each country and
in the region as a whole.

So, again, context: I can tell
you that the funders already
sent missions to Gabon,
Republic of Congo. And a
reminder to you, that we
already have programs with
Central African Republic and
Chad. Okay?

Now, we also have sent a
mission to Cameroon, which is
the question. And we did issue
a press statement, which the
question referred to, just on
Tuesday. That was the Corrine
Delechat reference.

So, the specific question, to
turn to that. We are indeed
aware of the events in the
so-called Anglophone regions
of Cameroon. The macroeconomic
impact of any event that could
affect production and/or
consumption, is typically felt
with a certain lag. So, these
events started in November
last year, and thus are likely
to have not had a significant
impact on production in 2016.

For 2017, the risks to our
growth outlook include a
combination of external and
domestic factors, including
continuation of the
sociopolitical events in the
northwest and southwest
regions of Cameroon. And as
our press release the other
day indicated, our view is
that the medium-term outlook
for the Cameroonian economy
remains positive, subject to
the implementation of
appropriate policies."

We'll have more
on this. Watch this site.

***

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